Globalization refers to increased interaction across borders in various aspects such as trade, academic, research, science, communication, among other things. Lately, with the introduction of information technology and the relative stability in the world, globalization has prospered and grown to high levels. This paper argues that globalization is good for a number of reasons. The paper observes that globalization has facilitated a number of positive effects and impacts on the world at large and individual countries specifically. With the emergence of interaction through technology, globalization can only be improved and facilitated to ensure increased growth and developments in the entire world.
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Foremost, globalization has promoted global trade to levels that had previously not been anticipated. Through globalization, countries have been able to increase their exports and imports in terms of volumes. This has been facilitated by the improved global trade. The effect of increased exports and imports can be seen in the relative improvement in the quality of lives. Through exports and imports, countries have been able to import technological infrastructure and knowledge. In the image shown below it can be seen that countries have continuously increased their amounts of imports and exports.
The image shows the share or world imports and exports of eight economies which are arguably the largest. From the table, it is important to note the changes as postulated in the figures of 1963, 2009 and 2010. The increasing levels point to an increase in globalization. What impact have these changes had on the economies?
Statistics indicate that global trade accounts for over 50% of the economies of the eight countries in the table. This is to mean that the countries rely on the international market for their products. A good example is the blossoming economy of China. It has been observed that in the next twenty years or so, China may become the world’s largest economy overtaking the United States of America which currently leads. An analysis of the Chinese market reveals that China manufacture more that thrice what it consumes. In addition, China is in the overall a net exporter. The growth of the economy of China is, therefore, predicated on the exports which can only occur through globalization. Globalization has opened markets for the products beyond the national borders. It is the same approach that the other seven countries rely on. For instance, Germany is the leading manufacturer of model vehicles, the Mercedes Benz. Through globalization, Germany is able to sell this brand vehicle all over the world earning for its country billions in profits.
It is only through globalization that multinationals can be possible. Multinationals are the countries that operate in several countries with their headquarters located in their mother country. Multinationals have several benefits to the economies both from an employer and an employee perspective. Multinationals have the effect of stimulating economic growth in the general economies. This is because the arrival of multinationals and subsequent settlement often changes the economy of the areas. Multinational create employment not only for the exported laborers but equally for the local workforce within the locality. It improves the general services of the area. In addition, multinationals contribute to the tax to the national government. Ordinarily, every multinational is often subjected to a higher taxation rate primarily because they are often considered foreign. It is through globalization that multinationals are able to operate and function. It needs to be appreciated that products from multinationals often find their way into the international markets. A good example is petroleum. Petroleum is mostly processed and supplied through multinational. The giant BP Shell is a good example. In the absence of globalization, some basic and essential international commodities may lack or be scarce. It is their scarcity or lack of it that would negatively impact on economies and cause deficiencies. For instance, in all the leading economies of the world, the main source of energy is petroleum. Petroleum not only fuels transportation, it also enables the functioning of machinery used in the processing of products. Interestingly, not all countries are endowed with any or sufficient quantities of crude oil. For that reason, countries must export petroleum to meet their energy needs. In the absence of globalization, the global trade would not be possible. This would have a negative impact on the industrial development and progress of economies.
Globalization accounts for the international trade by countries. Indeed, a countries’ economic performance is often a function of its balance of trade. Through globalization, countries are able to improve their balances of trade so as to have positive balances. This especially favors the developing countries. Most developing countries are endowed with agricultural potential. They have to exploit the agricultural resource base, produce food products and other related agricultural products such as horticultural products and then export for favorable balances of trade. It is through globalization that such countries can access the global markets and dispose of their products or rather exchange their products for those they need such as technology. In the absence of globalization, it would not be possible for countries to enjoy such exchange options. This needs to be examined in detail in the context of comparative and competitive advantages that globalization enables. Competitive and comparative advantages refers to the specialization by countries to produce and manufacture products they are best placed to produce and avail them in the market for exchange with the goods they need but lack the comparative advantage to produce. In the absence of globalization, the efficiencies and effectiveness in terms of quality and costs enjoyed in comparative advantage would be lost.
Globalization has facilitated the spread of information and technology. This has taken different approaches and contexts. In fact, it is arguable that the spread is still on motion and continuous. Through globalization, for instance, technological discoveries such as the internet have spread all over the world. The internet has improved the world in terms of lifestyles tremendously. It is through the interaction of the world that it was possible to share the discovery that is the worldwide web and consequently enjoy the attendant benefits for the betterment of lifestyles. Today, communication and exchange of information and ideas has become as easy. In fact, the popular mantra in town is that the world has become a village. Among the benefits that have accrued include the increased global trade, fast and effective communication and elimination of the national barriers. In addition, the world of academia has tremendously improved. Today, information is possible over the internet and accessible to anybody in any locality of the world. This is a byproduct of continued globalization. Within the same context of spreading technology and lifestyle changes, the role of globalization manifests itself through multinationals which not ferry laborers but equally import technologies into areas of the establishment. This has had immense effects to the economies and general lifestyles of the areas of establishment. The image below shows the number of world internet users as at 2008 according to the world geographic region. It is illustrative that the number of users is nearly proportional to the economic growth of the regions attesting to the fact that globalization stimulates the economy and improves the lifestyles of people.
Globalization equally contributes to the political stability of nations. This is because nations in their attempts to improve the business climate for international investment and global trade attempt to streamline their political systems and operations in line with the international requirements. This has been an essential ingredient for international investors to settle on nations for purposes of investment. The advantage derived from this is that countries and indeed political systems have become alive to the human rights of the citizenry and are in a continuous attempt to satisfy the legitimate expectations of their citizenry. In fact, in some cases it has occasioned the intervention of international bodies such as the United Nations to champion for the rights of the citizenry. Globalization has not only led to the importation of commodities but equally advanced the spread of legal, political and cultural structures and doctrines that have in the end enabled the liberation of colonized people, dictatorships, fascist and other forms of inhuman political systems. In its current context, globalization aims at achieving not only economic progress for nations, but also world safety and respect of human rights. It is on that premise that the United Nations and indeed even the United States of America have taken an active role in the fight against the proliferation of weaponry and terrorism. At the end of the day, globalization enables the liberation of people and consequent enjoyment of freedom.
In conclusion, globalization needs to be appreciated for its covert and overt effects. Globalization aims at creating stability and efficient of systems. It seeks to improve the economic, political and social contexts of nations. It enables the interaction of the world as a small global village and aims at promoting efficiency and effectiveness. For that reason globalization needs to be embraced in its entirety and checks and balances put in order to prevent its misuse and undermining. It is on that context that this paper takes the position that globalization is good. The paper appreciates the weaknesses and other negatives brought about by globalization. It takes the position that with a positive approach in implementing and effecting globalization, all parties stand to gain. The participants in a global arena must see to it that their own interests are taken into consideration in any configuration of a globalized approach. With that in mind it would be possible to have everyone benefit from the beauty of a globalized economy.
Image retrieved from http://globalizationstudies.sas.upenn.edu/node/145.
References
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